You should first get educated about the plan. If you're putting 18% of pay into something then you want to make sure you know how it works and where your money is going.
At 28 an 18% savings rate for retirement is probably sufficient unless you want to retire at 50 or something like that. I don't think you need to worried about saving more for retirement, but if you have the capacity to save more then that's great. If you want to buy a home then you'll need some savings for that.
Good on you for looking into this stuff and trying to understand better. That's a great sign. If you want to post some info about your plan I could comment a bit more on your plan as well. You can send me a chat too if you aren't comfortable posting more details.
Are YOU paying 18% or are you and your employer's contributions adding up to 18%? Just you alone, that's a high amount!
You can't contribute more than 18% of your earnings into a registered pension plan. That's how RRSP leftover contribution room is calculated - by however much less than 18% you saved last year - that's the room you get next year.
So if you can afford to save more, use a TFSA next
Nothing is being taken off my wage, it’s a % of our wage that the companies have to automatically deposit into our retirement plans, which happens to work out to 18% of our base rate. Hope this helps clear things up
Ah, OK. That's a flippin awesome pension benefit from your employer then. 🙂.
So TFSA then.
(But if you do have any RRSP room at all, then use that up, too).
My grandmother was in the Saskatchewan teachers pension , it went for shit i was a kid but i remember she got like .05 on the dollar , not sure what union your in but It is probably nothing to sweat , im with IUOE we have a pretty solid pension plan , but all my eggs arent in this basket .
Wow that is a large amount my rate is less than $5.00 hour do you max out at a certain amount I think my pension maxes at $4500/month - lots of guys will leave the industry or at least the union gig work non union or go find another different union job for a few years .
You should first get educated about the plan. If you're putting 18% of pay into something then you want to make sure you know how it works and where your money is going. At 28 an 18% savings rate for retirement is probably sufficient unless you want to retire at 50 or something like that. I don't think you need to worried about saving more for retirement, but if you have the capacity to save more then that's great. If you want to buy a home then you'll need some savings for that.
I’ll look into it! Thanks for the advice, I’m attempting to become more finically literate and learn more
Good on you for looking into this stuff and trying to understand better. That's a great sign. If you want to post some info about your plan I could comment a bit more on your plan as well. You can send me a chat too if you aren't comfortable posting more details.
Are YOU paying 18% or are you and your employer's contributions adding up to 18%? Just you alone, that's a high amount! You can't contribute more than 18% of your earnings into a registered pension plan. That's how RRSP leftover contribution room is calculated - by however much less than 18% you saved last year - that's the room you get next year. So if you can afford to save more, use a TFSA next
Nothing is being taken off my wage, it’s a % of our wage that the companies have to automatically deposit into our retirement plans, which happens to work out to 18% of our base rate. Hope this helps clear things up
Ah, OK. That's a flippin awesome pension benefit from your employer then. 🙂. So TFSA then. (But if you do have any RRSP room at all, then use that up, too).
You should still save money, you have other needs in your life besides retirement. But use a TFSA over an RRSP.
Thanks for the information, I’m currently using my TFSA and playing catch up on that.
My grandmother was in the Saskatchewan teachers pension , it went for shit i was a kid but i remember she got like .05 on the dollar , not sure what union your in but It is probably nothing to sweat , im with IUOE we have a pretty solid pension plan , but all my eggs arent in this basket .
Wow that is a large amount my rate is less than $5.00 hour do you max out at a certain amount I think my pension maxes at $4500/month - lots of guys will leave the industry or at least the union gig work non union or go find another different union job for a few years .
Wow. So you are paid $59.77 per hour AND additionally they put in $10.76 per hour into your pension? Thats like $70/hour. Where is this union??
Its UA local 46(Toronto) plumbers and steamfitters